The U.S. drugstore retail sector is facing a major transformation with huge pharmacy retailers downsizing operations to cut costs and some filing for bankruptcy.
America’s largest drugstore chains have closed hundreds of store locations over the last four years to reduce labor costs, eliminate above-market leases, plug leakage from theft, and shut down underperforming stores.
Some of the nation’s smaller pharmacy chains, facing similar financial distress, have been forced to file for bankruptcy protection to restructure debt.
Related: Popular pizza and beer chain files for Chapter 11 bankruptcy
Giant drugstore chain Rite Aid, however, filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores in a reorganization.
The pharmacy chain’s surviving entity, New Rite Aid LLC, filed for Chapter 11 protection a second time on May 5, 2025, and began closing all of its stores, estimated at about 1,240 locations at the time.
Rite Aid files bankruptcy notice to close the last of its stores
Rite Aid is approaching the end of its existence as it filed its 14th notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on July 25, seeking approval to close 17 more stores and liquidate their assets, which adds to previously designated locations for closing in its second bankruptcy, for a total of 1,237 stores.
The debtor has not indicated if any additional stores remain to be closed.
The retailer already filed its final location closing order on July 10.
Rite Aid’s 14th additional closing notice consists of store closures in five states, including Washington (11), New York (3), California (1) Oregon (1), and Pennsylvania (1).
Objections to the 14th closure notice are due by Aug. 4.
Rite Aid closures by state:
- California (348)
- Connecticut (15)
- Delaware (29)
- Idaho (7)
- Maryland (23)
- Massachusetts (4)
- New Hampshire (47)
- New Jersey (61)
- New York (178)
- Ohio (4)
- Oregon (36)
- Pennsylvania (352
- Vermont (5)
- Virginia (26)
- Washington (102)
Rite Aid on July 21 filed its 13th notice of additional store closing locations, seeking to shutter one location in Colonial Heights, Va.
Objections to the 13th notice are due by July 31.
Rite Aid already filed 14 notices of store closing locations with the original notice and an additional closing notice on May 9, followed by additional closing notices on May 15, May 23, May 30, June 6, June 13, June 20, June 27, July 3, July 11, July 18, and July 21.
Related: Beloved beer brand files Chapter 11 bankruptcy
The first 14 groups of store closings listed 1,220 locations in 15 states, including Pennsylvania (351), California (347), New York (175), Washington (91), New Jersey (61), New Hampshire (47), Oregon (35) Delaware (29), Virginia (26), Maryland (23), Connecticut (15), Idaho (7), Vermont (5), Massachusetts (4), and Ohio (4).
Another major drugstore chain, CVS, in 2021 started its downsizing campaign when it said it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024.
The company extended the downsizing campaign into 2025, revealing in its annual report in February that it would close 271 more stores this year.
Walgreens, which operates about 8,600 stores, evaluated 2,000 stores for potential closure and identified 1,200 locations to shutter over the next three years, with 500 set to close in fiscal year 2025.
Drugstore chain location closings:
- CVS: 1,171 store closings 2022-2025.
- Walgreens: 1,200 store closings 2025-2027.
- Rite Aid: 2,037 store closings 2023-2025.
Closing stores wouldn’t be enough for several smaller drugstore chains that have opted for Chapter 11 bankruptcy to reorganize their businesses.
Smaller pharmacy bankruptcy filings
Eastern Kentucky drugstore chain Rx Discount Pharmacy, with about seven pharmacy and healthcare businesses, on May 1, 2024, filed for Chapter 11 bankruptcy reorganization.
CL Cressler Inc., the owner of seven Medicine Shoppe Pharmacy stores located in Pennsylvania and New York, on Aug. 29, 2024, filed for Chapter 11 bankruptcy to reorganize its debts.
Finally, in Arkansas, drugstore chain Doctor’s Orders Pharmacy on July 21 filed for Chapter 11 bankruptcy, as its parent Whitehall Pharmacy LLC faced a breach of contract lawsuit.
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